This bill amends existing laws regarding electric and gas utilities in Alaska, specifically focusing on the service agreements with large energy use facilities. It introduces a new subsection to AS 42.05.381, stating that costs incurred by utilities to serve these facilities cannot be included in their rates unless those rates are specifically designed to recover those costs from the facility itself. Additionally, the bill establishes a new section, AS 42.05.435, which mandates that utilities must enter into contracts with large energy use facilities that outline specific terms, including a minimum contract duration of 12 years, expected purchase amounts, and penalties for early contract termination. The contracts must also ensure that the costs associated with infrastructure and variable costs are directly assigned to the facility, preventing any increase in costs for other customers.

Furthermore, the bill requires municipalities to enter into community benefit agreements with large energy use facilities before the utility contracts can be approved. These agreements can address various community concerns, and if not established prior to construction, municipalities are granted the authority to seek injunctions to halt construction or operation of the facility. The bill also clarifies definitions related to electric and gas utilities, large energy use facilities, and the applicability of these regulations to new facilities that begin service after the bill's effective date.

Statutes affected:
HB0259A, AM HB 259, introduced 01/16/2026: 42.05.381, 42.05.435, 42.05.371, 44.83.720, 29.71.800